Suppose the economy is in a short-run equilibrium, where the actual output is greater than potential output, then the economy is in:
A.
an inflationary gap, nominal wages will increase and SRAS will shift to the left until the actual GDP is equal to the potential GDP in the long run.
B.
a recessionary gap, nominal wages will decrease and AD will shift to the left until the actual GDP is equal to the potential GDP in the long run.
C.
an inflationary gap, prices of goods will increase and AD will shift to the right until the economy is in long-run equilibrium.
D.
a recessionary gap, prices of goods will decrease and LRAS will shift to the left until the economy is in long-run equilibrium.